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Sapiens International Corporation, (Holon, Israel), a global provider of software solutions for the insurance industry, announced today that it has entered into a definitive agreement to acquire Delphi Technology Inc., a vendor of software solutions for property/casualty carriers, with a focus on the medical professional liability (MPL)/healthcare professional liability (HCPL) markets, also known as medical malpractice insurance. A Sapiens statement on the deal says its primary goal is expanding Sapiens’ presence in the MPL market. Delphi’s 2019 full-year revenue was $15 million and operational loss on the bottom line. Sapiens says that the total consideration is up to $19.5 million in cash. Sapiens anticipates the acquisition to be accretive to profit in early 2021.
U.S.-based Delphi, founded in 1989 and headquartered in Boston, has over 100 employees and approximately 40 insurance customers. The company offers core products for MPL, including policy administration, claims management, and financial and risk management. Sapiens says that it will continue to support Delphi’s products and customers, who can now benefit from a variety of complimentary products and services. In addition, Sapiens says it will leverage Delphi’s expertise and know-how to further enhance its CoreSuite for Property & Casualty to provide a holistic, multi-line, comprehensive solution to the MPL market.
“Industry consolidation has challenged MPL insurers to deliver differentiated products and services for the full scope of healthcare providers, including large institutions and networks, individuals, small groups and captives,” comments Martina Conlon, EVP, Research & Consulting, Novarica, Inc. “Insurers need a strong technology partner to deliver flexible, digital offerings with best-in-class service options. The Delphi acquisition gives Sapiens rich MPL domain knowledge and a customer base to advance its position in the U.S.”
“I am pleased to welcome the Delphi team as we strive to create additional value for customers,” comments Roni Al-Dor, President and CEO, Sapiens. “The U.S., where our suite of digital and cloud offerings has increased our market share, is a significant growth driver for Sapiens. The Delphi acquisition expands Sapiens’ presence in the MPL market and improves our prospects in this key region. The combination of Delphi’s deep knowledge base and customer portfolio – combined with Sapiens’ solutions, relationships, and resources—will enhance our position as a leading solution provider in the U.S.”
Much Deeper Penetration of the MPL Market
“Sapiens’ advanced technologies and scalable services models, backed by Delphi’s market presence, extensive client relationships, and domain expertise, will enable a much deeper penetration of the MPL market,” says Sam Fang, founder and CEO of Delphi Technology, Inc. “Together, Delphi and Sapiens will create exciting new opportunities for employees, customers, and prospects. Energized for the future, we eagerly look forward to seamlessly integrating with Sapiens to serve the MPL market.”